Puerto Rico Compass ©

Q1 2013: Still, An Uphill Path Ahead

An analysis of 1st Quarter 2013 economic indices

Puerto Rico has a long way to go before it can truly be considered a post recession economy. This Compass analyzes PR’s current economic conditions compared to precession levels in Q1 2006. The island economy is still fragile. The new administration in “La Fortaleza” faces daunting challenges and tough decisions to walk the fine line between fiscal discipline and economic growth. Credit rating agencies, bondholders, and the general public want to see quick results but that is not possible when the problems have remained unsolved for many years. The local fiscal year budget is due on June 30 and the current government has to choose between restrictive fiscal policies (more taxes, less spending) or try to restore growth thru expansive measures (fewer taxes, more spending) or a reasonable combination of both.

Puerto Rico Economic Pulse ©

March 2013: The Threat of an Incredible Labyrinth

An analysis PR’s performance in 2012 and forecast

The world is in a state of turmoil that ranges from the chaos after the financial crisis to the current crisis in the Eurozone, from the Arab uprisings to tensions between North Korea and Japan. There are protests everywhere, Cyprus, Athens, Barcelona, New York, and elsewhere. The US dollar faces a real risk of losing its standing among international currency markets. Many of the familiar frameworks are collapsing while the world undergoes rapid change. Political leaders in Puerto Rico need to address local issues and people’s specific demands, but without a clear vision, such a reaction is likely to be inadequate or insufficient to reactivate the PR economy. This Pulse presents a concise outlook of external and internal factors that will define economic policy and strategic planning. HCCG also presents its macroeconomic forecast for fiscal years 2013 thru 2015.